The European Stability Mechanism (ESM)

Eurozone finance ministers will start on Thursday a month-long process of choosing their next chairman to replace Portugal's Mario Centeno who will step down in July, with ministers from Spain, Luxembourg and Ireland among possible candidates.

Bank of Greece Governor Yannis Stournaras on Monday stressed the need to seek and activate instruments such as a bad bank, as the so-called Hercules Asset Protection Scheme (HAPS) is considered insufficient, while he also recommended taking recourse to the credit line of the European Stability Mechanism (ESM).

Greece's central banker said on Monday he will advise the government to make use of the cheap, long-term credit lines that will be made available by the Pandemic Crisis Support fund of the European Stability Mechanism (ESM).

Cyprus is the first country in the eurozone to announce that it plans to make use of the cheap, long-term credit lines that will be made available by the Pandemic Crisis Support fund of the European Stability Mechanism (ESM).

Eurozone governments gave their final approval on Friday to the first part of a 540 billion-euro rescue plan for states hit hard by the coronavirus pandemic, although other elements of the rescue package have yet to be agreed on.

Eurozone finance ministers agreed on Friday to offer cheap credit lines that can be tapped until the end of 2022 by countries hit by the coronavirus pandemic, two European officials said.

"All agreed. The program can be used until the end of 2022," one of the officials said.

From now on the government will have to reach for the country's liquidity safety cushion to cover its cash requirements as a result of the reduction of state revenues and the support measures for households and enterprises.

The government has likened the financial agreement struck by Eurozone finance ministers on Thursday in response to the Covid-19 pandemic to a prescription of painkillers when what is really needed is antibiotics.

It was nonetheless satisfied overall with the outcome. 

European Union governments piled pressure on the Netherlands on Thursday to unblock half-a-trillion euros of economic support to fight the coronavirus ahead of a meeting of finance ministers, with Italy saying the very future of the EU was at stake.

The Hellenic Federation of Enterprises (SEV) estimates the burden on the state budget from the shuttering of enterprises at about 6 billion euros per month, and recommends an immediate market foray while the timing remains favorable, given the low yields, as most states will also try to tap the markets soon.